CONGESTION charging could cut property values in Manchester city centre, a top expert has warned.

Capital values of office blocks could drop by as much as three per cent, says Simon Reynolds, partner at GVA Grimley.

"There shouldn't be any serious economic downside to congestion charging, but there could be a temporary setback if Manchester is first and other cities hold back from charging.

"If that happens, we risk some companies making short-sighted relocation decisions and choosing not to come to Manchester.

"I take comfort from the fact that the authorities have said they won't go ahead until appropriate public transport is available - but there will be a period of adjustment, and that might create some changes, especially for office buildings with car parking. In some cases, it could drive down the capital values of office buildings by as much as two or three per cent."

Last month Greater Manchester leaders approved plans to seek é1bn government funds to improve transport - on condition that they introduced a congestion charge.

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